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Samsung Union Demands 15% Profit Share, Warns of Strike

Samsung's largest labour union has reiterated its demand for 15% of operating profit as performance-based bonuses. Union head Choi Seung-ho warned mediation could collapse if no progress is made on institutionalizing the scheme. The union plans an 18-day strike from May 21. A potential walkout at the world's largest memory chip maker could disrupt semiconductor supply chains.

Key Points: Samsung Union Demands 15% Profit Share | Strike Threat

  • Union demands 15% of operating profit for bonuses
  • Talks broke down in March over performance-based pay
  • Strike planned from May 21 if no progress
  • Samsung Q1 profit surged to 57.23 trillion won
2 min read

Samsung's labour union reiterates demands for 15 pc performance-based payout

Samsung's largest labour union reiterates demand for 15% performance-based payout, warns mediation could collapse ahead of planned strike from May 21.

"We have continued to call for performance-based bonuses equivalent to 15 percent of operating profit - Choi Seung-ho"

Seoul, May 11

The largest labour union at Samsung Electronics on Monday reiterated its demand that the company allocate 15 per cent of operating profit to employee performance-based bonuses and remove the payout cap, warning that mediation efforts could collapse if no progress is made.

Choi Seung-ho, head of the union, reaffirmed the labor group's position ahead of follow-up mediation talks aimed at averting the union's planned 18-day strike beginning May 21, reports Yonhap news agency.

"We have continued to call for performance-based bonuses equivalent to 15 percent of operating profit, along with the removal of the payout cap and the institutionalisation of the system," Choi told reporters ahead of the meeting at the National Labor Relations Commission in the central administrative city of Sejong.

"If the company does not present a position on institutionalising the scheme, we believe mediation efforts could break down as early as today," he added. The talks began Monday and are scheduled to continue through Tuesday.

Last month, Samsung Electronics posted an operating profit of 57.23 trillion won for the first quarter, up from 6.68 trillion won a year earlier, driven by strong demand for high-end memory chips used in artificial intelligence applications, said the report.

Management and the labour union have been engaged in wage negotiations since December, but talks broke down in March after the two sides failed to narrow differences over performance-based bonuses.

The labour dispute at Samsung Electronics, the world's largest memory chip maker and South Korea's most valuable company, has raised concerns that a walkout could disrupt production and upend the semiconductor supply chain as well as hurt the broader economy as a whole, according to the report.

- IANS

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Reader Comments

M
Michael C
As someone working in tech, I get the union's frustration—Samsung's Q1 profit jumped from 6.68 trillion to 57.23 trillion won, and workers want a share. But a 18-day strike? That's risky for a company like Samsung which is crucial for global semiconductor supply. Let's hope both sides compromise.
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Priya S
Reminds me of Indian labour disputes in manufacturing hubs 🤔 Samsung should definitely consider performance-linked bonuses, but 15% of operating profit seems high—maybe a phased approach would work better. Still, workers deserve fair compensation when the company is making record profits.
R
Rahul R
The union's demand for institutionalizing the bonus system makes sense—otherwise it's at management's whims. But a strike could cripple Samsung's chip production and affect global supply chains, including phone and laptop markets in India. Hope they resolve it without disrupting operations.
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Sarah B
Considering Samsung's Q1 profit was over 57 trillion won, the workers' demand for a 15% performance bonus seems reasonable—but only if it's tied to actual productivity. The removal of the payout cap is a tough ask though, as it could impact long-term investments. Management needs to show more flexibility.
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Vikram M
भारत में भी ऐसे ही मुद्दे होते हैं | Samsung's union is brave to push for this—most Korean companies have strong management resistance. The 18-day strike threat is serious; if it happens, expect chip shortages and price hikes globally. Both sides should come to the table with realistic expectations. 🇮🇳

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